THE BRENTHURST FOUNDATION

China in Southern Africa: Bleak view from the street

Terence McNamee

The Brenthurst Project

• 200 interviews, 5 countries

Key Findings

• Africa draws the poorest and least educated of the overseas Chinese Diaspora.

Key Findings

• Africa has the poorest and least educated of the overseas Chinese Diaspora.

• Chinese traders are in Africa because they could not make a living in China

Key Findings

• Africa has the poorest and least educated of the overseas Chinese Diaspora.

• Chinese traders are in Africa because China has become too competitive

• Chinese migrants have forged their own

pathways in Africa

Key Findings

• Africa has the poorest and least educated of the overseas Chinese Diaspora.

• Chinese traders are in Africa because China has become too competitive

• Chinese migrants have forged their own

pathways in Africa

• More than half are from Fuijan Province

• Chinese traders have been successful with small businesses in Africa where local firms have failed or feared to tread

Angola Botswana Lesotho South Africa Zambia

Primarily local 0.04 0 0.39 0.09 0.11

Primarily Chinese 0.96 0.94 0.44 0.91 0.89

Elsewhere 0 0.06 0.17 0 0

10%

30%

50%

70%

90%

110%

Origin of goods sold by Chinese traders

• Chinese traders have been successful with smalls businesses in Africa where local firms have failed or feared to tread

• Business is becoming more competitive

• Chinese traders have been successful with smalls businesses in Africa where local firms have failed or feared to tread

• Business is becoming more competitive

• Relations between Chinese traders and African communities are deteriorating

Johannesburg

Greater Cape Town

5% 15% 25% 35% 45% 55% 65% 75% 85% 95%Johannesburg Greater Cape Town

Yes 0.87 0.26

No 0.13 0.74

Yes

Yes

No

No

'Is corruption a serious problem?' Comparing Johannesburg and Cape

Town

Africa’s Globalisation Link

Western consumer demand

Asian production & savings

Africa’s Globalisation Link

Responding to the rising tide of violence?

A final question

How will they respond to new legislation….

Will tighter regulatory frameworks make Africa a much less attractive place for Chinese traders to do business, perhaps even mark the decline of the Chinese shop?

Or will the qualities exemplified by unemployed factory workers and farmers from Fuijan, who succeeded as traders in the continent’s remotest villages and toughest neighbourhoods, see them through the new legislation and enable them to continue to thrive?

The END